TN CM Vijay announces full waiver of farm loans up to Rs 75,000

Tamil Nadu Chief Minister C Joseph Vijay announced additional relief for farmers by fully waiving cooperative farm loans up to Rs 75,000 and providing partial relief on higher loans. The measure will cost the state Rs 953 crore and benefit over 1.38 lakh farmers

Chennai: Tamil Nadu Chief Minister C Joseph Vijay on Monday announced full waiver of cooperative farm loans up to Rs 75,000. Also, he announced a waiver up to Rs 75,000 for loans ranging up to Rs one lakh. The waiver beyond Rs one lakh will be Rs 35,000.

The latest waiver will entail an additional expenditure of Rs 953 crore to the exchequer, CM Vijay said. Emphasising that agriculture is the backbone of the state and that the prosperity of the nation depended on supporting farmers, he said despite the state facing financial constrains, his government decided to extend the additional support worth over Rs 900 crore to farmers.

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Making an announcement under Rule 110 in the Assembly, Vijay said the government previously waived agricultural loans up to Rs 50,000 within 15 days of taking office in May. This was later expanded to provide full waivers for loans up to Rs 75,000, and a Rs 35,000 waiver for loans exceeding Rs 75,000, benefiting over 14.44 lakh farmers.

Following consultations with agricultural unions on August 7, 2026, the government decided to provide additional relief despite current financial constraints and Reserve Bank of India guidelines that required rapid settlements with cooperative banks, the chief minister said, announcing additional benefits.

As per his announcement, cooperative farm loans up to Rs 75,000 will now be provided 100 per cent waiver. “This initiative will provide additional support to over 1.38 lakh farmers, representing an additional financial commitment of approximately Rs 953.06 crore by the government, with a total waiver amount reaching Rs 6,220 crore for 13.34 lakh farmers,” the CM said.